Geico is very cheap because it sells insurance directly to consumers and offers a lot of discounts. Direct-to-consumer insurance sales eliminate the cost of. Direct sales of insurance to the consumer eliminate the cost of middlemen and allow Geico to have far fewer local offices and agents than companies like State Farm and Allstate. Having a smaller agent network reduces Geico's overall costs, so they can transfer those savings to consumers.
In addition, individual premiums are based on many factors, such as age, driving history and zip code, so while Geico is usually the cheapest, drivers can find cheaper insurance elsewhere. Geico offers affordable coverage by offering a variety of discounts and by selling insurance directly to consumers. Both Geico and Progressive are reputable insurers with a positive reputation in the industry, but which one is best for you depends on your situation. This number of complaints may seem high, but it represents a small fraction of customers when you consider that Geico is the second-largest auto insurance provider in the U.S.
UU. Geico also has a longer list of discounts than State Farm, including savings for having a car with safety features, such as airbags or anti-lock brakes, and for insuring more than one vehicle. USAA is cheaper than Geico for young drivers, and Travelers is cheaper than Geico for drivers with red light violations. When comparing Progressive and Geico, Progressive offers more insurance coverage options and add-ons, and Geico offers more affordable rates on average.
Next, ValuePenguin compares the cost of car insurance from State Farm, Geico, Allstate, Progressive and Farmers for different types of people, including those looking for policies with lower limits, those who have an accident, those with bad credit, and teenage drivers. Every insurance company determines its rates differently, so even though Geico is among the cheapest car insurance companies, the best way to ensure you're getting the cheapest rate is to compare quotes from several insurers. Along with standard car insurance policies, both Geico and Progressive offer additional coverage options, such as roadside assistance and rideshare insurance. Using auto insurance rates across the country, ValuePenguin compared the cost of coverage from State Farm, Allstate, Geico, Progressive and Farmers.